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Divergence

The system is one, the results are different. Why?The system is one, the results are different. Why?  It is checked by practice - if several traders (approximately the same level) work on the same system, the results will be completely different. Why? Psychology with problems of a personal character comes to the fore. People have different psychotypes, different attitudes to risks, different measures of responsibility for results, different levels of perception of the current state of the market. The same "pain threshold" for drawdown is individual. Therefore, in the process of training, along with the description of the trading system, more attention is paid precisely to the analysis of each student of personal statistics. Only personal statistics suggest the strengths and weaknesses of each trader. For example, one is excellent at trading in the first half of the session, by the end of the day the results are falling. Another may be better able to trade on VSA patterns or technical analysis, but the levels and clusters are bad. On a large amount of data (sufficient statistical sampling) and doing performance analysis with correction of the rules of trade for everyone. Knowing your strengths and weaknesses is simply bound to improve your trading. Even the introduction of the rule-just DO NOT TRADE what more often causes a loss of 100% will lead to an increase in the expectation. And to trade ONLY their statistically profitable situations))). No countless "magic" systems and indicators, multiple viewing of video trades of other professionals (they know their advantages, and you do not own) will not give a positive result. Therefore, working on yourself is the cornerstone of profitable trade. All good and right decisions!   Now the bitcoin is a bearish divergence on open interest. The hidden divergence on CMO has worked successfully.
BITFINEX:BTCUSDEducation
by fvb
2
OPEN INTEREST DIVERGENCE cryptocurrency The indicator of open interest is a little used indicator in the market of crypto currency. However, this is a mistake. After all, in fact, no indicator will provide a clearer signal of confirmation of the strength of the trend or its reversal. Open interest is one of the first indicators used to conduct technical analysis. It is not based on any formulas. It only displays the number of open positions for a given underlying asset. An even stronger signal is the divergence of open interest and a price chart. Divergences for a short position look at the maximum peaks of prices and open interest. Divergences for a long position look at the lowest values Experienced it is necessary to choose the right period of open interest, for experiment we took one of the Fibonacci numbers The example shows how the indicator last worked For all questions regarding the indicator - write to the e-mail address or to private messages, the indicator is for all popular coins in relation to the dollar and to BTC
BITFINEX:BTCUSDEducation
by fvb
9
Chaikin Money Flow (CMF) Chaikin Money Flow (C.M.F.) Definition Chaikin Money Flow (C.M.F.) is a technical analysis indicator used to measure Money Flow Volume over a set period of time. Money Flow Volume is a metric used to measure the buying and selling pressure of a security for single period. C.M.F. then sums Money Flow Volume over a user determined look-back period. Any look-back period can be used. However, the most popular settings would be 20 or 21 closes. In the Chaikin Money Flow's value fluctuates between 1 and -1. C.M.F. can be used as a way to further quantify changes in buying and selling pressure and can help to anticipate future changes and therefore, trading opportunities. Chaikin's Money Flow's value fluctuates between 1 and -1. The basic interpretation is: When C.M.F. is closer to 1, buying pressure is higher. When C.M.F. is closer to -1, selling pressure is higher. Buying and Selling Pressure can be a good way to confirm an ongoing trend. This can give the trader an added level of confidence that the current trend is likely to continue. However, just becaue buy/sell pressure is in favor of the current trend it does not mean that levels shown can sustain the direction if it is advancing or declining into the opposite direction. During a Bullish Trend, continuous Buying Pressure (Chaikin Money Flow values above 0) can indicate that prices will continue to rise. During a Bearish Trend, continuous Selling Pressure (Chaikin Money Flow values below 0) can indicate that prices will continue to fall. The C.M.F. is designed for use with the On Balance Volume (OBV) and Chaikin Oscillator in addition to other volume indicators. See: www.tradingview.com(CMF) Example In this example, I will focus on a Bearish scenario since most traders tend to be able to spot Bullish scenarios easily. As can be seen on the 6 hour chart above, the divergences are typically pretty clear. At the C.M.F. peak shown by the vertical red line, we had a nice rally prior. At the C.M.F. peak we dropped for 18 hours and then started a new rally. At this point, the C.M.F. began to show less buy pressure that did not coincide with the new price high since its prior peak. In this case, I would monitor smaller time frames (for quicker reaction data) to see if the volume picks up. It did not; creating a drop to match the actual buy pressure decline. Move forward to the price action shown by the vertical blue line. We attempted another rally with less than convincing buy pressure on the C.M.F.. Price action created what some traders call a double top that could not be sustainable due to the declining buy pressure on the C.M.F.. For my settings here I have left the stock inputs at 20 and changed the view to area with breaks. Conclusion The Chaikin Money Flow (C.M.F.) is great for identifying hidden price movements. As with all indicators you should use it in conjunction with similar indicators (Volume based in this example) and also confirm on multiple time frames. The C.M.F. has been a great tool that I have used over the years to identify early price prediction and movement. I will focus on indicators best used in conjunction with the C.M.F. in my next few educational ideas. Click like on this if you would like to learn about more trading tools. Thanks!
BITSTAMP:BTCUSDEducation
by Nick_Core
19
What is 'Divergence' on BTC What is 'Divergence' Divergence appears on a bar chart when the price of an asset and an indicator, index or other related asset move in opposite directions. In most of time DVG have 3 peak, or bottom,. 3rd is considered as confirming. Best indicators for look DIVG is MACD, CCI, RSI, also clone of MACD is Awesome Acs. Best and most confirmed divergence can be found on long term chart, H4, D. Also can look at m30, H1, but there is can be as normal corrections, but its doesn't mean cant help to make money buy open or close position in right way. Recommended to draw dvg, lines by closing price on candles or bars.
BITSTAMP:BTCUSDEducation
by GeorgeVeritas
Divergence Trading PatternsDIVERGENCES are used to forecast an upcoming Price Reversal or Continuation. There are 4 different types of Divergences and the first ones are Regular Bullish and Regular Bearish Divergences. What are they? Regular Divergences are when the price movement is contrary to the indicator movement. Signal for an upcoming Price Reversal, trend is about to change. Then the second ones are Hidden Bullish and Hidden Bearish Divergences. Hidden Divergences are signal of Trend Continuation. Meaning that the price continues to move in it's current direction. If you have learned this method already this is a great reminder and works very well as cheat sheet. But if you are a learner then the chart is explaining very simple how you can spot them. You should take time and effort to learn this. It does not take long before you start spotting different kind of divergences. You can use one of following oscillators to spot the divergences. (In the end it does not really matters which one you use). MACD RSI CCI + BB etc there are more but here are few you to get started. Any questions or need help? Feel free to leave comments and feedback! Yarr!
BEducation
by yarr
4
Another way to use "Divergence" to spot Fakeout from Breakout -is to find out if the momentum is getting stronger or weaker, if the chart make a higher high and the indicator made lower high so it refer to; the momentum is decreasing, in order to spot the (breakout from fakeout) -in this example we have a rectangle consolidation, you can see the first breakout was a fake out, here we'll use divergence to spot this fake out take a look at the indicator is making higher low while the price get back to same low this indicate the momentum is decreasing, the bears are already exhausted and the price get back to rectangle pattern. -But the next one was a real breakout look at the indicator is making lower low just like the price, also if you look what just happened next the price soar up to reach the support line of the rectangle pattern which is turned to resistance, the bears gathers more steam to push the price down -Hopefully this was helpful and another tool to put it in your arsenal facing the market wish y'all a green week, Peace.
Education
by YaseenG.Housari
3